Redbox, Lionsgate Sign Multi-Year Agreement

The “Divergent” studio’s films will go in kiosks the day of retail home entertainment release

Redbox and Lionsgate have signed a multi-year agreement to put the studio’s films on Blu-ray and DVD in kiosks the day of retail home entertainment release, it was announced Tuesday.

The kiosk company saw nearly 775 million rental transactions in 2013 and as of July its digital marketing channels had more than 35 million email subscribers, 26 million app downloads and 5 million SMS subscribers.

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“Our agreement with Lionsgate continues our track record of establishing win-win relationships with content producers,” said Mark Horak, president of Redbox.  “We look forward to continuing to delight our customers with quality, new release content from Lionsgate.”

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The video kiosk giant, which currently has 35,000 locations, pulled the plug earlier this month on its struggling streaming service. Redbox Instant was a joint venture of Verizon and Redbox parent Outerwall Inc. and was launched last year to compete with Netflix.

It never caught on, however, and for now it appears the company will focus on its kiosks and offering popular films for rent at the same time as they become available in stores. Many other services have a later window to debut new home video releases.

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“We’re pleased to extend our long-standing partnership with Redbox,” said Lionsgate President of Home Entertainment Ron Schwartz. “We remain committed to expanding the choices and enriching the quality and excitement of the home entertainment experience for our consumers, and our Redbox relationship is an important part of this commitment.”